SOCIETE GENERALE Factoring

Société Générale Factoring provides receivables finance solutions including domestic and international factoring, invoice discounting, supply chain finance (reverse factoring), and programs structured around the purchase of trade receivables. It typically acquires B2B invoices under the French Dailly assignment regime or equivalent legal frameworks, advances a portion of eligible receivables, manages collections, and can include insolvency risk coverage on approved debtors. Facilities may be set up with or without recourse, with advance rates commonly in the 80–95% range; a reserve is retained to cover credit notes, disputes, and potential dilutions and is released upon debtor payment. Pricing usually combines a discount margin over a reference rate on funds in use, a factoring commission based on assigned turnover or outstanding, and ancillary charges such as set-up, due diligence, audit, debtor check, minimum usage, and termination fees; agreements often include minimum annual volume commitments and notice periods. Supply chain finance programs provide early payment to suppliers against buyer-approved invoices, with fees allocated according to program design. International coverage is supported through the bank’s network and correspondent factors for local collections and risk management; export solutions can include coverage of commercial and, where applicable, political risks up to approved limits, with multi-currency processing. Onboarding involves KYC, financial statements, customer listings, and invoice data; eligibility criteria address invoice quality, debtor creditworthiness, sector and country limits, concentration caps, and documentation standards. Operationally, clients transmit invoice files, notify debtors of assignment where required, reconcile chargebacks, and monitor availability via reporting interfaces. The offering targets companies from SMEs to large corporates with recurring B2B receivables and extended payment terms; businesses with high dilution, complex contract-based billing, or significant disputes may face tighter eligibility and lower advance rates. Key considerations include total cost vs. alternative bank lines, the effect of notification on buyer relationships, reserve mechanics, and the dependence of non-recourse coverage on approved debtor limits.